Demand for private rented housing remained strong at the end of 2021, according to the National Residential Landlords Association.

Over half (56%) of landlords reported a rise in demand for privately rented homes in the last quarter of 2021, said the landlord body.

This was almost identical to the 57% who saw the same trend in the third quarter of 2021.

Regionally, demand was highest in the South West, with 77% of landlords confirming that demand increased in the final quarter of 2021. Meanwhile, in a sign of post-COVID recovery in the London market, 74% of Central London landlords saw increased demand.

However, the research revealed that renters face a struggle to find homes as supply dries up.

Shortage of rental homes

Despite strong demand, the proportion of landlords planning to reduce the number of properties they let (24%) outstrips the proportion planning to purchase homes to let (14%).

Economic consultancy Capital Economics recently warned that, without urgent action, the supply of homes for private rent could fall by over half a million over the next 10 years.

Ben Beadle, chief executive of the National Residential Landlords Association said: “The rental housing supply crisis is only set to worsen, as renters continue to feel the effects of a market starved of a healthy supply of homes for private rent.

“The Government needs to accept that for all the rhetoric about homeownership, many people need to rent beforehand. Policies that dampen investment in the private rented sector serve only to reduce choice, drive up rents and, as a result, make homeownership more difficult to achieve.”